All Articles Tagged - USDCAD

Technical Analysis – Is USDCAD poised for another bullish round?

Posted on March 15, 2024 at 8:37 am GMT

USDCAD brings key resistance in focus after rebound Technical signals are encouraging, but a bullish outlook expected above 1.3600 USDCAD made a strong comeback on Thursday, surpassing its simple moving averages (SMAs) and breaching the 1.3500 level after encountering fresh buying around the familiar long-term line from November 2022. The 50% Fibonacci retracement of the November-December 2023 downleg is currently challenging the bulls around 1.3535. The chances of the bulls winning the game there are high because the RSI has crossed the neutral [..]

Technical Analysis – USDCAD loses 1% after pullback from 1.3600

Posted on March 8, 2024 at 8:03 am GMT

USDCAD tumbles below 200-day SMA But remains within ascending channel Stochastics and MACD lose steam USDCAD is plunging after the pullback near the 1.3600 psychological level, remaining within the medium-term upward sloping channel. However, this dive drove the market beneath the 200-day simple moving average (SMA) and the technical oscillators are also losing momentum, indicating more losses. The MACD is standing beneath its trigger line, while the stochastic is slipping into the oversold territory. If the bears continue to sell [..]

Market Comment – Powell still sees rate cuts this year, ECB enters the spotlight

Posted on March 7, 2024 at 9:34 am GMT

Powell says it may be appropriate to lower rates this year Yen rallies as speculation about BoJ exiting negative rates intensifies BoC appears less dovish than expected, central bank torch goes to ECB Wall Street rebounds, gold hits a new record high Dollar slides as Powell adds to rate cut hopes The US dollar extended its decline against its major peers yesterday, with the commodity-linked currencies aussie, kiwi, and loonie gaining the most. The greenback remains in a sliding mode [..]

Weekly Technical Outlook – USDJPY, EURUSD, USDCAD

Posted on March 4, 2024 at 12:17 pm GMT

USD/JPY holds above 20-day SMA as investors wait for fresh rate signals EUR/USD inside a constraining zone as ECB rate decision looms USD/CAD stabilizes near December’s barrier ahead of BoC policy meeting Nonfarm payrolls, Powell’s testimony –> USD/JPY USDJPY remained flat and supported around its 20-day simple moving average (SMA) even though Friday’s ISM manufacturing PMI for February fell short of expectations by a large margin, squeezing Treasury yields lower. Investors are now eagerly waiting for the Fed chairman’s testimony [..]

Will Bank of Canada pave the way for a rate cut after CPI drop? – Preview

Posted on March 4, 2024 at 9:18 am GMT

Bank of Canada kicks off March round of central bank meetings Dovish tilt is possible after CPI drops back below 3.0% Wednesday’s decision, due 14:45 GMT, may deepen loonie’s losses Progress on inflation The Bank of Canada heads towards its second policy meeting of the year with some good news on the inflation front. The consumer price index eased to 2.9% y/y in January from 3.4%, falling below 3.0% for the first time since June 2023 when the disinflation process [..]

Technical Analysis – USDCAD dives from 2½-month peak near 1.3600

Posted on February 29, 2024 at 2:27 pm GMT

USDCAD holds in ascending channel Stochastics indicates overstretched market USDCAD is falling following the new two-and-a-half month high slightly above the 1.3600 psychological level. The pair has been developing within an upward sloping channel since January 10 and is still holding above short-term simple moving averages (SMAs). Technically, the MACD oscillator is overcoming its trigger line above the zero level; however, the stochastic oscillator is moving horizontally near the 80 level. So, if the market has a closing day beyond [..]

Canada’s GDP to rebound but not the loonie – Preview

Posted on February 28, 2024 at 2:23 pm GMT

Canadian economy set to return to growth but remain sluggish Will the Loonie be able to capitalize on any good news? Canadian economy to avoid recession once again The Canadian dollar has barely made any serious progress against other major currencies this year besides the battered Japanese yen. Canadian Q4 GDP data may not come to the rescue on Thursday to give the much-needed boost, but investors will still look for any signs rate cuts will be necessary sooner than later. The Canadian economy experienced a [..]

Technical Analysis – USDCAD uptrend loses power

Posted on February 23, 2024 at 9:03 am GMT

USDCAD lacks strength but holds near key support zone Short-term bias looks neutral USDCAD has been facing difficulties in printing new higher highs for more than a week now, shifting to the sidelines to trade around 1.3480. The technical indicators are mirroring the absence of buying interest, with the RSI easing towards its 50 neutral mark and the MACD remaining muted below its red signal line. The flattening simple moving averages (SMAs) is another indication of an indecisive market. On a [..]

Market Comment – Dollar in wait and see mode, kiwi extends gains

Posted on February 20, 2024 at 9:02 am GMT

Dollar trades mixed as traders await tomorrow’s Fed minutes Kiwi extends gains on bets that the RBNZ could hike again Aussie remains unimpressed by hawkish RBA minutes China announces biggest ever cut in 5-year LPR Fed minutes the next test for the dollar The US dollar traded mixed against the other major currencies on Monday as US markets remained closed in observance of President’s Day. The greenback gained some ground against the pound, the franc and the loonie, while it [..]

Week Ahead – Fed minutes headline a data-heavy week

Posted on February 16, 2024 at 10:26 am GMT

Dollar shines after inflation surprise, awaits latest Fed minutes In Europe, business surveys will be crucial for euro and sterling Canadian and Australian data releases also on the agenda Fired up dollar turns to FOMC minutes It was a beneficial week for the US dollar, which charged higher after data revealed US inflation is not cooling down as quickly as investors had hoped. Traders were forced to unwind bets of imminent Fed rate cuts in the aftermath, lending [..]

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USDCAD